Notice to Radhikapur (west) coal block allottees for progress lag

The ministry has given developers a period of 20 days to respond to the notice

Continuing its crackdown on frivolous coal block developers, the Ministry of Coal (MoC) has issued showcause notice to allocatees of yet another coal block in Odisha.

The notice has been served to Rungta Mines, OCL India Ltd and Ocean Ispat Ltd, who were jointly allocated the Radhikapur (west) coal block with 210 million tonne reserves. Last week, the ministry had issued showcause notice to Jindal Steel & Power Ltd (JSPL) for delay and unsatisfactory progress in development of Utkal B1 coal block in coal rich Chhendipada area in Angul district.

The showcause notice for Radhikapur (west) coal block follows a caution letter issued earlier to the allocatees in April 2012 with the direction to expedite work on the coal block.

The ministry has given the developers a period of 20 days to respond to the notice failing which it will initiate appropriate action for de-allocation of the block.

The showcause notice has been served in accordance with a direction from the inter-ministerial group (IMG) that recommended for issue of notices to all the defaulting companies keeping in view the unsatisfactory progress of the coal blocks. IMG is mandated to oversee progress of allocated coal blocks and associated end-use projects and recommend action, including de-allocation if required.

Critical milestones on development of the coal mine like grant of forest clearance, grant of mining lease, completion of land acquisition, application for opening permission and grant of environment management plan clearance are still pending.

The Radhikapur (west) coal block was allotted to the three firms jointly for a sponge iron plant on April 25, 2006.